Convoy, a Seattle-based startup, is bringing the Uber model of connecting drivers and customers with mobile technology to the $749 billion market for hauling freight and merchandise.
Amazon CEO Jeff Bezos, Salesforce.com’s Marc Benioff and eBay founder Pierre Omidyar are among the investors backing Convoy, along with Uber co-founder Garrett Camp.
Convoy, which shippers can use to request a truck, get instant price quotes and track drivers throughout pickup and delivery, has so far fundraised $2.5 million. The startup mainly focuses on shorthaul trucking, usually one-day trips between companies. “Trucking is probably the largest outdated industry in the country,” said founder Dan Lewis, who left Amazon in February to start his own company.
Convoy has been operating since April of this year, serving customers in Washington state. Convoy has almost 100 trucks from pre-approved vendors in Convoy’s network, according to Lewis. Their aim is to compete with brokers who handle requests from shippers, negotiate pricing and arrange for trucks to haul freight. Convoy’s software lets customers specify what kind of truck they need and select accessories such as a tarp, a lift gate or protective gear. Pricing is determined by an algorithm, and the software also figures out which trucker is best-located and able to fill the job.
Convoy plans to expand to other areas in the next year.
